The UK is set to win a battle against Spain to attract a new battery “gigafactory” to be built by Jaguar Land Rover owner Tata, the BBC has reported.

Indian conglomerate Tata has been openly weighing up two possible locations for a battery factory to supply Jaguar Land Rover, Britain’s largest carmaking employer, amid lengthy negotiations with governments for support worth hundreds of millions of pounds.

The threat of losing the factory to Spain has prompted the UK government to bow to intense pressure and offer financial support worth £500m for the plant. Many in the auto industry believe the project is vital to retain a meaningful car industry in the UK as it transitions to electric vehicles – although some analysts suggest this is not the case.

Guardian